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Corporate Insolvency and Governance Bill becomes law

26 June 2020

The Act includes both temporary and permanent measures that aim to allow "breathing space" for struggling busineses to survive. These include a moratorium from creditor action of 20 business days - extendable to 40 with court documents filed - to restructure or seek new investment and new restructuring procedures.   Retoractive temporary measures include restrictions on statutory demands and winding up petitions as a result of Covid-19, withholding supplies to businesses entering insolvency or restructuring (with exceptions), and personal liability to directors for wrongful tradings.  Filing deadlines at Companies House have also been extended.

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